Legality of tax audits in the Union of Cinematographers of Azerbaijan questionable

Statement of the Ministry of Taxes to check a tax liability for the Union of Cinematographers of Azerbaijan XI International Film Festival "East - West", held more than 3.4 years ago (18-25 September 2009), is politically motivated and linked to the fact that 2013 is a presidential election year," said Doctor of Economic Sciences Gubad Ibadoglu.

In his opinion, the field audit of taxes on income, profits, property, road and land tax could cover (Article 36.3 of the Tax Code of the AR) up to 3 years.

Filmmakers' Union is a non-governmental organization (association) exempt from VAT and income tax, which may pay taxes on the source of payments, on income of the wages fund and social security contributions.

It is reasonable and approval of the ministry that the Union had violated the law by issuing cash in trust 267,130 of 330,000 manat allocated for the festival. Under the tax law, a waste of cash is not restricted.

Unreasonable is also the statement about the theft of 22,000 manats allocated for transportation costs. Dozens of guests, including foreign investment, a major international event in a week moved to the capital of Azerbaijan. Probably, they were attached to private drivers, who were paid for services - confidently declares economist.

According to him, if the Ministry of Taxes considers their claims justified, it shall send them to the Ministry of Culture and Tourism of Azerbaijan, as well as targeted financial support for the festival it is allocated. Consequently, the ministry had to request the interim and final financial report from the Union.

Ibadoglu believes that the deliberate attack of the government on the leading institution of civil society, which is the Union of Cinematographers of Azerbaijan, can significantly damage the image of Azerbaijan in the international arena. - 17D-